GRIFFITH City Council has refused to sell four blocks of land at a “fire sale” price, despite them draining more than $100,000 from council coffers over the past decade.
At a time when every dollar counts in council’s budget, turning the properties into profit would make a big difference to its financial position.
The lots, on the corner of Railway and Ulong streets and at Lake Wyangan, were bought with good intentions between 2003 and 2005 but council is having trouble
moving them on, with no expressions of interest received.
Griffith Community and Development Council president Lance Perry criticised council for its venture into the housing market.
“I know council do these things in good faith but time and time again it backfires,” Mr Perry said.
“No one is going to buy here with the uncertainty of water – there are people who have just about had to give houses away to get out of Griffith.
“Council has got to realise this is not a big city.
“The (federal) government is not going to build anything here and the state government is not going to spend any money here.
“You don’t invest in a place that’s going nowhere.”
The four lots have cost council $108,000 in rates since 2003, in addition to holding expenses for each property, which include maintenance and development costs as well as interest.
The Railway Street block was initially purchased as the future site for the new council administration building.
But, after the decision was made to refurbish and extend the existing building instead, the land became a liability.
Council voted to take expressions of interest for its sale last year, with all revenue to be used to complete the Griffith Community Hospital project.
“It is very valuable land and, from a council perspective, it needs to be moved on,” Griffith mayor Mike Neville said.
“It’s important that we convert it from an asset that is costing us funds to an asset that will bring in funds.”
With the block one of the last available in Griffith’s CBD, council was adamant it would not drop the value of the land to prompt a quick sale.
“There is a fear factor for investors created by the (Murray-Darling) Basin Plan and 10 years of drought but we’re not just going to give away a valuable piece of community land,” Cr Neville said.
The other three pieces of land sapping council funds are farming properties at Lake Wyangan, which were purchased with the intention of building “affordable housing” for the community.
Two have been cleared and a development application was approved in 2009 for their subdivision into 187 allotments.
The other farm still bears citrus.
While the Lake Wyangan lots are not yet on the market, council is keen to sell them on as soon as possible.
Cr Neville said $7 million of council funds would be needed to prepare the properties for sale as housing estates.
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